Federal authorities have rearrested a woman indicted last year in an alleged $56 million high-yield-investment scam, claiming she continued to break the law after being released on bond.
Jannice McLain Schmidt, 68, of Denver, was arrested Thursday and remained in custody Monday, officials said. A federal magistrate will consider whether to revoke her bond during a hearing Thursday.
Schmidt and six others, including her husband, Norman Schmidt, were indicted in March 2004. Investigators said they lured more than 1,000 people to put money into fictitious high-return international bank investments.
They collected $56 million from investors, which they allegedly spent to pay off earlier investors and buy personal assets, such as the historic Redstone Castle near Glenwood Springs and several NASCAR race cars. The castle property has since been auctioned by federal officials.
The defendants sent monthly statements to investors that falsely reflected healthy returns on their investments, investigators said.
Officials charged each with conspiracy, mail fraud, wire fraud, securities fraud and money laundering. A trial date has not been set.
Jannice Schmidt was released in April 2004 after posting a $100,000 bond. Three others – George Alan Weed of Benton, Ill.; Michael Duane Smith of Colbert, Wash.; and George Beros of Shaker Heights, Ohio – also were released on bond. Peter A.W. Moss of London remains at large.
Norman Schmidt and Charles Franklin Lewis of Littleton were jailed and remain in detention.
In their new indictment filed last week, federal officials said Jannice Schmidt sent four money orders to an investor and monthly statements to two others after she was released. According to another government filing, this “constitutes probable cause to believe that defendant Schmidt has violated the conditions of her release by committing federal felonies.”
Jannice Schmidt’s attorney, Daniel T. Smith, said the new counts in the latest indictment involve the same victims named in earlier charges and add little new information to the case.
“It appears to be a lot of old news,” he said.
Staff writer Greg Griffin can be reached at ggriffin@denverpost.com or 303-820-1241.
